Scheme for Financing- Working Capital requirement for Cold Storage

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  • Scheme for Financing- Working Capital requirement for Cold Storage
  • Eligibility
    • Working Capital Finance is to be provided to those units, who have either availed term loan from our bank or have not availed any loan facility from any other financial institutions.
    • The term loan account of these cold storage holders should be Standard Regular.
    • Multiple banking arrangement is strictly prohibited under the scheme.
    Purpose To meet the working capital requirement of cold storage units for onward lending to the farmers who have stored their agricultural commodities with them. In Addition facility is also allowed for agriculture commodities belonging to cold storage owner
  • Finance
    Amount of Loan
    • 70% of the capacity of the storage unit or last 3 years actual average storage and market value or minimum support price of agricultural commodities whichever is less.
    • However, under the onlending the loan amount per farmer should not exceed ₹2.00 lac or 70% of value of produce stored whichever is lower.
  • Security and Margin
    Primary Security Hypothecation of receivables/ book debt arising out of advances to farmers for storage of agricultural commodities/ Agriculture Commodities owned by the cold storage owner
    Collateral Security

    First/second charge on fixed assets of the cold storage unit.

    • 1. Personal guarantee of partners/promoters/directors.
    • 2. Any other tangible collateral security if available.
    Validity Period

    The account shall be got adjusted in the phased manner as per following:

    • 50% upto October.
    • 90% by Nov. and in exceptional cases (where seed quality potato is stored)
    • 10% of Peak level limit during the off season month of Nov. to Feb. against book-debts and stocks ( consumables) available instead of liquidation of limits.
    • In case of multi commodity cold storage the limit may continue on regular basis & drawings may be allowed as per D.P.
    • However D.P shall not be allowed against any agriculture commodity beyond 12 months of its storage.
  • Rate of Interest and Repayment
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